Emaar Malls gets nod to merge with parent
Emaar Properties has received the regulatory go-ahead for its planned re-merger with Emaar Malls, the company that owns The Dubai Mall. This was granted by Securities & Commodities Authority. Emaar Properties announced the merger plan in early March.
This will see Emaar Malls’ shareholders (excluding those in Emaar Properties) receiving 0.51 Emaar Properties shares for every one Malls share. This represents a premium of 7.1 per cent to the closing price of Emaar Malls on March 1, the last trading day before the merger announcement.
This represents a premium of 3.5 per cent to the closing price of Emaar Malls on September 1. The merger is subject to meeting multiple conditions, including approval by shareholders who own at least 75 per cent of the shares represented at general meetings of Emaar Properties and Emaar Malls.
According to market sources, the vote should sail through, with a combined entity being seen as providing long-term value for shareholders as well.